For many entrepreneurs, the end game is there before they ever know they are losing. Business seems to be booming, the bills are being paid, but suddenly there is no money. The game is over, the business is closed, and the business owner never knows what hit him. This can be avoided. Knowing a few simple strategies can help business owners not only keep their heads above water, but actually move forward and grow in a way that increases profits.
Set and Track Goals
Setting goals can be an ambiguous task, but it doesn’t have to be. The first month it may be something as simple as “pay the bills”. In a few months it may be to simply make a profit. After a while however, specific goals can be set such as “increase profits by 10% next month,” or “increase sales by 5% next month.” The key is to track these goals and ensure they are being met. To do this, you have to know what that would even look like.
Know How the Numbers SHOULD Look
Entrepreneurs need to pay attention to the financial health of their business. There is more to this than simple looking at the end of the year statements. Business owners need to know where the company stands this month, as compared to last month, and where it stands at any given point within the month. If this is not known, there is no way to now if a goal of increased sales or profits was even reached.
Pay Attention Before the End
Better than realizing a goal has or has not been met is recognizing whether or not a goal is on track to be met before it actually happens. For example, if you know that sales were $X last month, and in the first week of the current month you have only reached 1/8th of this amount rather than ¼, you can investigate further, determine what the issue is, and fix it to get sales back on track to outshine the previous month. It sounds simple, but so many small business owners have no clue what sales were last year, let alone last month.
What Could Be Wrong and How to Fix It
There could be any number of issues causing you not to meet your goals. However, very often it is nothing more than a need to expand or update. For these types of issues, small business loans can be a small business owner’s best friend. Whether it be a small business line of credit to simply update paint or cover minor repairs, or one of several types of equipment loans available to help update equipment or buy new equipment, there is a solution.
The easiest way to go about finding the financing solution that is right for you is to try a small business loan marketplace like Biz2credit.com. These sites offer a service to borrowers by gathering some basic information and matching them up with lenders and products that best fit their needs. This can shave priceless time off of the borrowing process and get the business back on track to growth and success much quicker than trying to find small business loans alone.
This article was submitted by Faith Stewart. Faith Stewart has a BBA with a major in accounting and spent 10 years working in the various aspects of accounting and finance before pursuing her passion for writing.